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UAE Lowers Petrol, Diesel Prices for July

Fuel prices for motorists will be cheaper in the UAE from July 1. The UAE Ministry of Energy announced on Thursday that consumers would pay Dh2.56 (69.7 cents) per liter for Super 98, a 2.6% drop from June's price of Dh2.63 (71.6 cents).

Price of Special 95 will decline to Dh2.45 (66.7 cents) a liter, down from Dh2.51 (68.33 cents) a liter in June. Diesel prices will drop to Dh2.66 (72.41 cents) a liter, compared to Dh2.71 (73.77 cents) in June. All prices are inclusive of value-added tax.

The drop in fuel prices comes despite an increase in global oil prices. Prices of fuel have been fluctuating ever since the Ministry of Energy began liberalizing fuel prices using "benchmark prices" in July 2015 following the scrapping of subsidies. The market-linked prices came into effect from August 1, 2015.

Global oil prices rallied on Wednesday, with the US benchmark settling at its highest since 2014 as domestic crude supplies notched their biggest weekly drop of the year so far. The falling US inventories and supply disruptions in Libya and Canada haven been pushing the commodity higher.

US light crude was down 5 cents at US$72.71 per barrel by 1331 GMT, after hitting US$73.06 on Wednesday, its highest since November 2014. Benchmark Brent was up 5 cents at US$77.67.

The US Energy Information Administration confirmed a significant decline in crude inventories reported earlier this week by the American Petroleum Institute. The EIA said US oil stockpiles declined by 9.9 million barrels during the week ended June 22 to 416.6 million barrels.